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Short-term FDs are best suited for liquidity and meeting small goals like travel or emergencies, as they give quick access to money. On the other hand, long-term FDs work well for wealth growth and future planning, offering steady returns over time. Experts suggest maintaining a balance of both types to enjoy flexibility as well as stability. This way, you can meet immediate needs while also securing long-term financial goals.

Key takeaway for 2025Choose your FD based on your financial goals, comfort with risk, and expectations about future interest rates.